Article shared by runninggirl2016 over there - Why
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Posted On: 08/13/2017 7:26:01 PM
Article shared by runninggirl2016 over there - Why Has 2017 Been a Horrible Year So Far for Biotech Acquisitions?
"There's no question that several big companies need and want to make acquisitions. Gilead Sciences (NASDAQ:GILD) is a prime example. The big biotech's hepatitis C sales are tanking, its HIV products aren't growing enough to offset those hep-C declines, and Gilead's pipeline won't deliver quickly enough to turn things around. Gilead's executives have been stating since last year that they want to make one or more acquisitions.
I suspect Gilead will wait to see what happens with tax reform. Put Pfizer on the list as well. The company made several significant deals last year and wants to make more. I also think Amgen should be looking to spend some of its big cash hoard to boost its pipeline. And those are just a few of the big companies that could join the fray.
My prediction is that acquisitions activity will kick into overdrive in 2018. I suspect that will be the case whether corporate tax reform passes or not. If it passes, companies will be champing at the bit to bring money back into the U.S. and will no doubt spend a good chunk of it to buy smaller biotechs. If tax reform fizzles out, my hunch is the big players will figure they might as well move forward anyway."
https://www.fool.com/investing/2017/08/13/why...biote.aspx
"There's no question that several big companies need and want to make acquisitions. Gilead Sciences (NASDAQ:GILD) is a prime example. The big biotech's hepatitis C sales are tanking, its HIV products aren't growing enough to offset those hep-C declines, and Gilead's pipeline won't deliver quickly enough to turn things around. Gilead's executives have been stating since last year that they want to make one or more acquisitions.
I suspect Gilead will wait to see what happens with tax reform. Put Pfizer on the list as well. The company made several significant deals last year and wants to make more. I also think Amgen should be looking to spend some of its big cash hoard to boost its pipeline. And those are just a few of the big companies that could join the fray.
My prediction is that acquisitions activity will kick into overdrive in 2018. I suspect that will be the case whether corporate tax reform passes or not. If it passes, companies will be champing at the bit to bring money back into the U.S. and will no doubt spend a good chunk of it to buy smaller biotechs. If tax reform fizzles out, my hunch is the big players will figure they might as well move forward anyway."
https://www.fool.com/investing/2017/08/13/why...biote.aspx
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